Are Term Life Insurance Premiums Tax Deductible?

1 Business insurance When companies use life insurance, health insurance or disability insurance, it is not always clear bonuses are deductible or not. Part of the confusion is that other types of insurance premiums (property and civil liability, for example) may be deductible business expenses. In addition, premiums can sometimes be deducted, not because they are deductible by definition, but because, in some cases, they are considered payments or deducted contributions.